Markets look to start the week higher led by soybeans and wheat. Corn is up 1 and soybeans are up 8 to start the week.
Friday, we saw sharp losses due to the headlines from the EPA recommending the Biden administration to lower 2021 biofuel mandates below the 2020 levels. The Environmental Protection Agency is set to send a draft of biofuel-blending quotas to the White House for review as soon as Friday afternoon, marking a key step in the Biden administration’s bid to balance competing oil and agricultural interests.
EPA officials have advised lawmakers and industry stakeholders that White House review of the plan is imminent, setting the stage for the agency to formally propose how much renewable fuel must be mixed into gasoline and diesel in 2021 and 2022 within weeks, according to people familiar with the matter.
Some lawmakers have been told to expect relatively unchanged requirements — and even a slight reduction is possible — which could be a blow to producers of corn-based ethanol and soy-based biodiesel, according to one of the people.
Friday also saw the Pro Farmer Tour final yield estimates with corn at 177 bpa compared to the August USDA estimate of 174.6 bpa. The tour estimated soybean yield at 51.2 bpa compared to the August USDA’s 50.0 bpa.
Weekend rains fell in ND, MN, and IA while the eastern Midwest missed out on meaningful totals. The seven-day forecast has rains targeted for MN and WI while the eastern belt continues to be shortchanged. Traders will start to shift their focus from weather to demand as we move into September.
Have a Safe Day!